Lodging Finance Arranges Loan for Purchase of Underperforming Hotel

Purchase Financing

Lodging Finance recently arranged a purchase loan for an economy hotel along the Rte. 5 corridor in California.  The property had been underperforming and was in need of substantial updating.  This was a projection-based loan, as the past performance was unfavorable.  We negotiated a loan that required only 15% down payment.  This allowed the buyers to keep more of their capital on hand to complete the Property Improvement Program (PIP) and brand conversion.

What we liked about the deal:  The Buyers had experience in turning around hotels, and the projections were thoughtful and made sense.

Loan Term:  25 years

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